Unique analytical reviews from the international broker "Fort Financial Services"

By the end of the last week USD was able to regain positions after the release of report on USA retail sales in January that went beyond expectations and supported the opinion that FRS will maintain monetary policy, as claimed by analysts of Fort Financial Services. Thus USD grew versus European currency.

Next week investors’ attention will be focused on speech of ECB’s president Mario Draghi on monetary policy. On Tuesday investors will receive information on economic situation in Germany. Then ECB will release protocols of recent meeting on monetary-credit policy. These events will set the pace of further movement of the pair.
EUR/USD went down towards 1.1260 successfully breaking through it. Strong support is situated at 1.1150. Closure below this level will reduce bullish pressure, but closure below 1.1050 will set 1.0925 as the next aim. Nearest resistance is situated at 1.1260. In case of bulls’ strengthening currencies will likely move upwards 1.1350 aiming at 1.1440.
In the first half of the week Great Britain will publish data on increase of consumer costs and monthly report on employment rate. By the end of the week traders must pay attention to retail sales and borrowing of government sector in Britain.
USD slightly gain strength versus British currency, but trading still goes in narrow lateral range. Bears didn’t manage to close trading below 1.4490 support. Sellers were not able to change position of minimums. 1.4560-1.4630 resistance is still the main barrier. Restoration from 1.4400 minimum loses impulse. In case the pair won’t go above 1.4560 resistance it will likely return towards 1.4490 and then decline towards 1.4400 and 1.4320.
USD grew versus Swiss currency, but then eased the position. Bulls tried hard to break through 0.9790 resistance. USD/CHF moved from 0.9670 support and went up. However, the pair is still situated in consolidation zone. Leave of this range will be crucial for further movement with big possibility of new rise of USD. At the same time, breakage of nearest resistance will prepare the way towards 0.9880 and above 0.9960.
As said by analysts of FortFS, USD needs good news from USA to consolidate its positions. This week we are waiting for inflation data of USA that will show whether FRS is going raise a rate in 2016. On Monday American markets will be closed due to national celebration. Nonetheless on Wednesday some important news will be published such as producer’s price rise, new building permission, data on laying of new foundations and industrial production. Also FRS will release protocols of January meeting on definition of monetary policy that is leaved without changes.
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Today during trading on Forex market USD is stable versus Euro and Yen. Pressure on USD weakened and investors are less afraid of global economic risks due to rise of oil prices.

Stock markets of Pacific Rim demonstrate growth for two days. Chinese market is in the leading position. Thus Shanghai Composite went up for +91 points or 3.31% after it became known from report of People’s Bank of China that total funding grew for 2,42 trillion RMB (525 billion USD) in January instead of 2,2 trillion RMB according to Bloomberg and 1,9 trillion RMB according to The Wall Street Journal.

“Such speed up in loan growth in previous year only rises up long-term risks”, said Julian Evans-Pritchard, the specialist in Chinese economy of Capital Economics Ltd. “It is positive for economy in short-term prospects during next 12 months or so.”

Hang Seng index In Hong Kong grew for +186 points or 0.98%.

At the same time, Australian S&P/ASX 200 closed with rise adding +66,58 points or 1,37%. Japanese Nikkei 225 showed slight rise after decline during market opening. It added +31,85 points or +0,20%.

Complex technical analysis of some instruments:

Today USD/JPY is traded in narrow range after prominent upward correction that helped to break through and consolidate above 113.86. After that we may consider further growth towards 116.14 resistance.

Crucial resistance levels: 116.14 and 118.04.

Crucial support levels: 113.86 and 110.13.

AUD/USD continues to move in northern direction with help of rise of oil prices. Today there is a possibility of further growth towards 0.7218 resistance.

Crucial resistance levels: 0.7218 and 0.7382.

Crucial support levels: 0.7013 and 0.6907.

NZD/USD fell dramatically after Reserve Bank of New Zealand reported that inflation goes down and will be 1,6% in the first quarter instead of 1,9% in the previous one. We may consider decline that will be restricted by 0.6497 support.

Crucial resistance levels: 0.6678 and 0.693.

Crucial support levels: 0.6497 and 0.6380.

Gold price continues to fall today reaching 1191.05 support despite of slight jump from this level. Decline may resume and in case of breakage of 1191.05 support the price will reach 1156.13.